Many companies today are owned and managed by more than one member of the same family. There are obvious advantages to this type of business managements, including possessing common values and loyalty. However, it is quite common that family-run businesses often suffer from lack of expertise and favouritism.
One evident benefit of family-run enterprise is that family members often have shared values. In other words, family members are likely to share the same ethos and beliefs on how things should be done. This gives a business an extra sense of purpose and pride, which can be considered a competitive edge for a company. IKEA, Dr. August Oetker, Ford Motor Company and Wal-Mart are all examples of successful family-owned businesses, all employees of which are committed to their company values and are willing to build a long-lasting enterprise. Moreover, loyalty is also a benefit which can be attributed to family-run companies. Strong personal bonds mean that people are likely to stick together in hard times and show the determination needed for business success. During the 2008 global family-owned firms were the ones to sustain the least losses regarding financial matters.
Nonetheless, running a family company, has obvious disadvantages. Firstly, such companies may suffer from lack of skills or experience. So, some family businesses may appoint somebody into roles for which they are not exported enough or have no training and skills for. This can have a negative effect on the success of the business and lead to a stressful working environment. Additionally, it is hard to be objective when choosing to promote an employee, regardless whether they are a member of your family or not. Family-owned companies oftentimes show favouritism towards a relative instead of promoting the best worker. It is important to make business decisions for business reasons, rather than personal ones, but this can sometimes be difficult if family members are involved.
In conclusion, today there are numerous companies that are owned and run by a member of one family. While such businesses have benefits, including motivation and loyalty, there are also major drawbacks, such as unqualified staff and in-group bias.
Many
companies
today
are
owned
and managed by more than one
member
of the same
family
. There are obvious advantages to this type of
business
managements, including possessing common values and loyalty.
However
, it is quite common that family-run
businesses
often
suffer from lack of expertise and
favouritism
.
One evident benefit of family-run enterprise is that
family
members
often
have shared values.
In other words
,
family
members
are likely to share the same ethos and beliefs on how things should
be done
. This gives a
business
an extra sense of purpose and pride, which can
be considered
a competitive edge for a
company
. IKEA, Dr. August
Oetker
, Ford Motor
Company
and
Wal-Mart
are all examples of successful family-
owned
businesses
, all employees of which
are committed
to their
company
values and are willing to build a long-lasting enterprise.
Moreover
, loyalty is
also
a benefit which can
be attributed
to family-run
companies
. Strong personal bonds mean that
people
are likely to stick together in
hard
times and
show
the determination needed for
business
success. During the 2008 global family-
owned
firms were the
ones
to sustain the least losses regarding financial matters.
Nonetheless, running a
family
company
, has obvious disadvantages.
Firstly
, such
companies
may suffer from lack of
skills
or experience.
So
,
some
family
businesses
may appoint somebody into roles for which they are not exported
enough
or have no training and
skills
for. This can have a
negative
effect on the success of the
business
and lead to a stressful working environment.
Additionally
, it is
hard
to be objective when choosing to promote an employee, regardless whether they are a
member
of your
family
or not. Family-
owned
companies
oftentimes
show
favouritism
towards a relative
instead
of promoting the best worker. It is
important
to
make
business
decisions for
business
reasons,
rather
than personal
ones
,
but
this can
sometimes
be difficult if
family
members
are involved
.
In conclusion
,
today
there are numerous
companies
that are
owned
and run by a
member
of one
family
. While such
businesses
have benefits, including motivation and loyalty, there are
also
major drawbacks, such as unqualified staff and in-group bias.